>> caption colorado, llc comments@captioncolorado.com >> pelley: tonight, a major breach of u.s. security. plans for our latest fighter jet and plans for the wars were stolen. david martin reports cyber thieves spent months combing through top-secret information undetected. the president sets a deadline of tomorrow. chip reid and nancy cordes have the latest on whether america is headed to default. they couldn't afford the mortgage anymore. anthony mason tells us how a new program lets them keep their home. >> today is a day that i waited for, for the past three years. >> pelley: and los angeles prepares for surgery on a major artery. can the city survive the two-day operation? captioning sponsored by cbs this is the "cbs evening news" with scott pelley.

>> pelley: good evening. the pentagon is confirming tonight that some of the nation's most sensitive military secrets have been looted wholesale by spies who managed to break in to government computers. plans for the wars in iraq and afghanistan, secret information about american satellites, plans for a new fighter plane are gone, vacuumed up in computer hacking apparently by hostile governments. the confirmation came today in a speech in washington by deputy secretary of defense william lynn. >> to date, malicious cyber activity has been directed at nearly every sector of our infrastructure and economy. our national security correspondent david martin has been investigating and hi managed to get the first television camera ever into the pentagon's command center that defends against computer attacks.

david also spoke to deputy secretary lynn about the information that's been lost. >> reporter: the joint strike fighter is the pentagon's high- priced ticket to air superiority for the 21st century. except four months ago the designs for that and other sophisticated weapons were stolen from defense industry computers by hackers-- 24,000 files in all. >> designs of satellites, u.a.v.s-- unmanned aerial vehicles-- cutting-edge military technology. >> reporter: is somebody out there robbing us blind? >> there are a lot of people out there taking a lot of information. >> reporter: lynn told cbs news the u.s. is still not sure who stole the data, although the most likely suspects are china and russia. but lynn is sure there is a mismatch between america's dependence on the technology of cyberspace... >> it drives our navigation, it drive ours targeting, it drives our communications. >> reporter: ...and its ability to defend against cyber attacks. >> the attackers are ahead of the defenders in cyberspace.

the technology for intrusions is far ahead of the technology for defenses, and we need to catch up. >> reporter: how often are there attacks on the pentagon's networks? >> there are attempted intrusions thousands of times a day. >> reporter: these intrusions are not pranks but espionage conducted by foreign intelligence agencies. cyber spies could be lurking undetected inside one or more of the defense department's 15,000 computer networks. they're in and we don't know it? >> it's entirely possible. three years ago, we found that someone had gotten into our classified network, and we didn't think that was possible because it's completely separate from the internet. >> reporter: a foreign intelligence agency-- lynn won't say which one-- penetrated a classified computer network used by the u.s. central command, which runs the wars in iraq and afghanistan. how long were they in? >> it was probably a matter of months.

>> reporter: they were in a matter of months undetected? >> yes. >> reporter: that must have been a wake-up call. >> that was a wake-up call, and it led us to the creation of the cyber command to try and organize our defenses. this can't be a pickup game. >> reporter: cyber command is located inside the headquarters of the top-secret national security agency. cbs news got an exclusive look at the new command's operations center. there's a war going on out there in cyberspace, and this is its nerve center. cyberspace is now just like air, land, and sea-- one more theater in which the u.s. military has to fight. >> there's been very few weapons-- probably no weapons in the history of warfare-- that have been developed and not used. >> reporter: right now, only states like china and russia have the capability to launch a cyber attack that could take down this country's power grid or banking system. but once a rogue state or terrorist group with no stake in the world economy gets it, the u.s. will be facing the threat of an attack from cyberspace by a weapon of mass disruption. david martin, cbs news, at cyber

command headquarters, fort made, maryland. >> reporter: at the white house this evening, today's talks to head off a government default ended after a little more than an hour and fifteen minutes. if a deal isn't reached soon, the u.s. will run out of money to pay its bills on august 2. chip reid is at the white house. chip, how did the talks go today? >> reporter: well, scott, sources tell me that there was some progress made today. now, the way it's going to work is that the leaders will go back to their members on capitol hill, explain where they are and they will see if a deal is doable. today's meeting at the white house was described as "polite," a stark contrast to how yesterday's ended when, according to eric cantor, the president stormed out cantor on the need to compromise. >> reporter: the white house says the idea that the president "stormed out" is preposterous, and so does house democratic

leader nancy pelosi, who was in the room. >> i just don't understand what the problem is, if the president of the united states who's at a meeting over two hours stands up and says "see you tomorrow." that's how meetings with presidents end. you don't leave first, the president leaves first. >> reporter: in an interview today with kyw-tv, the cbs station in philadelphia, president obama did make clear how frustrated he is with the republican negotiators. >> what i did say to them was very bluntly the american people expect us to stop political postures, to stop playing games and to solve this problem. and i was very blunt with them. >> reporter: with the possibility of an economic catastrophe now less than three weeks away, key members of both parties are considering a plan "b"-- to raise the debt limit before the august 2nd deadline even if that means putting off a debt reduction deal until later. today, white house press secretary jay carney said friday will be a crucial day in the negotiations. >> the president views friday as

an important moment where we can make an assessment about whether we are moving toward a significant bipartisan agreement on deficit reduction or not. >> reporter: if the answer is no, carney suggested the u.s. will be looking for another way to raise the debt limit. scott? >> pelley: thanks, chip. the house republican leader, republican eric cantor, who chip just mentioned, has been a congressman from virginia since 2001. he's a favorite of tea party activists. nancy cordes tells us that now that cantor is at the center of the budget crisis, he's become a lightning rod. >> good afternoon. >> reporter: in washington, where the blame is a blood sport, democrats have found their fall guy. >> leader cantor has yet to make a constructive contribution to these discussions. >> reporter: senate majority leader harry reid called cantor "childish." >> house majority leader eric cantor has shown he shouldn't even be at the table. >> reporter: the ambitious six- term congressman has given his

opponents plenty of ammunition. >> we're not going there. >> reporter: he blew up the original debt negotiations led by vice president biden when talk turned to tax increases, then pulled speaker boehner back from a grand bargain with the president because taxes were part of the deal. >> i cannot fathom how anybody, how anyone thinks right now is a good time to raise taxes. >> reporter: his hard-line approach has endeared him to tea party members who question boehner's commitment to their cause: no new taxes. do you feel like you're being made into a scapegoat here by the democrats? >> you know, this is not a game. this is serious stuff. we've got a job to do, and that is to ensure that we don't default on our debt. >> reporter: cantor, who is 48, fashions himself a "young gun" of the republican party, with a book... >> eric cantor. >> reporter: ...and video to match. >> they are the young guns. >> reporter: despite persistent rumors that cantor is gunning

for his job, boehner defended his embattled lieutenant today. >> any suggestion that the role that eric has played in these meetings has been anything less than helpful is just wrong. >> reporter: we asked cantor where he was willing to compromise, and he said the very fact that he's willing to raise the debt limit is a compromise. but he's voted to raise it four times in the past, scott, when president george w. bush was in office. >> pelley: now, nancy, the president says he wants to know by tomorrow whether a deal is possible, but if the default deadline is august 2, why the urgency? >> reporter: well, even if they were to reach a deal tomorrow, scott, which looks unlikely as it is, they'd have to take that plan back to their respective caucuses in the house and senate and sell it to their members because it really doesn't mean anything unless they can get the votes. then they have to write it up into legislative language, hold votes in the house and the senate, pass the exact same bill word for word-- no amendments,

no word changes-- and then send it to the president's desk for signature. and as you can imagine, all that takes time. >> pelley: thanks, nancy. we have late word tonight from minnesota, an update on the story that dean reynolds told us about last night, the government shutdown in that state. democratic governor mark dayton says now he will accept a republican budget proposal, and that could end the shutdown that has gone on now for two weeks. the f.b.i. has opened an investigation of rupert murdoch's newscorp. cbs news has learned that the bureau is looking into allegations that reporters from the "news of the world" tabloid were looking for ways to hack into the phones of victims of 9/11. also today, murdoch and his son james were summoned to appear before a parliamentary committee investigating the hacking scandal. score it a trial-ending error for the prosecution in the roger clemens perjury case; they're safe at home thanks to a new

program helping people avoid foreclosure; and in the city of angels, drivers will soon have a devil of a time-- when the "cbs evening news" continues. i have copd. if you have it, you know how hard it can be to breathe and what that feels like. copd includes chronic bronchitis and emphysema. spiriva helps control my copd symptoms... by keeping my airways open a full 24 hours. plus, it reduces copd flare-ups. spiriva is the only once-daily inhaled copd maintenance treatment that does both. and it's steroid-free. spiriva does not replace fast-acting inhalers for sudden symptoms. tell your doctor if you have kidney problems, glaucoma, trouble urinating, or an enlarged prostate. these may worsen with spiriva. discuss all medicines you take, even eye drops. stop taking spiriva and call your doctor right away if your breathing suddenly worsens,

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world, this may be welcome news: the transportation security administration said today it will try express lanes for security screening at four airports. bob orr sat down with the head of the t.s.a. today to find out how it will work. >> reporter: the goal is to streamline airport checkpoints by separating some frequent travelers from those passengers the t.s.a. knows least about. >> and so we have to make sure that folks on the highest risk... >> reporter: t.s.a. administrator john pistole says with terrorists still intent on hitting aviation, this approach will leverage limited resources and target the biggest potential threats. >> we want to make sure that those that we know very little about, that we can focus proper time and attention on them while at the same time recognizing that virtually everybody who flies is not a terrorist. >> reporter: the new screening initiative will be phased in this fall starting with two airlines at four major airports. selected frequent travelers boarding delta airlines in atlanta and detroit and some

frequent fliers on american airlines in miami and dallas will be invited to participate, as will u.s. citizens who've already passed background checks by customs and border protection. those passengers will have access to expedited security lanes, but only after providing t.s.a. with additional personal information. for security reasons, the t.s.a. won't say what that is, but sources tell us it will include phone numbers, addresses and travel histories. >> somebody doesn't want to share that information, however basic it may be, that's fine; they will just go through the normal screening process. >> reporter: so the price of participating is, i have to give up something? >> that's right. >> reporter: the passengers will still go through metal detectors but may escape more rigorous screening. for example, those fliers may be able to keep their shoes on and their laptops in their carry- ons. but the preclearance will not always mean a quick pass through the checkpoints. to keep potential terrorists from exploiting the new screening as a loophole, sometimes the prescreened passengers will still go through a full check.

>> there won't be guarantee. we'll always reserve the right to be random and unpredictable in the way we do our screening so terrorists cannot game the system. >> reporter: the new approach starts out small, benefiting a few thousand of the nearly two million people who fly in this country everyday. but if it works, scott, pistole wants to expand the concept, calling it a potential game- changer for travelers. >> pelley: thanks, bob. roger clemens' perjury trial never made it out of the first inning. the judge declared a mistrial today after federal prosecutors made a big error. they showed jurors evidence that had already been ruled off- limits. clemens, one of baseball's greatest pitchers, was charged with lying to congress when he testified that he never used steroids. the judge scheduled a september hearing to determine if clemens will face a new trial. imagine this: someone will buy your home when you can no longer afford it and sell it back to you at a price you can afford. that story is next.

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>> pelley: there were a million home foreclosures in the country last year, and there are expected to be a million this year. a lot of folks are desperate, so we asked anthony mason to look for an innovative program somewhere that's keeping people in their homes. he found it in boston, where a new kind of financial institution is buying foreclosed homes and selling them back to the original owners.

>> it took its toll on him, it took its toll on me. i ended up with an ulcer, and he ended up with a cardiac arrest. >> reporter: monica and mike bassila's housing nightmare started like so many others, with foreclosure and the threat of eviction. >> when they foreclose and you've got 80 people standing out... >> reporter: you had 80 people standing outside this house? >> yes. >> reporter: wanting to do what? >> buy the house. >> reporter: buy the house. but their story has a different ending. the bassila's house was sold... >> i understand that we have eight loans that just got approved? >> reporter: ...to a nonprofit financial group called boston community capital, which this week agreed to sell it back to them. >> we're prepared to schedule your closing so that you can actually have your home back. >> i know i'm going to cry because it's just... i'm sorry. >> reporter: what's the goal with this? >> the goal really is to keep as many people who are going through the foreclosure process in their homes as possible.

>> reporter: elise cherry is c.e.o. of boston community capital, which has taken a radical approach to the housing crisis. was it difficult to persuade banks to do this? >> well, it has been difficult, and it continues to be difficult. >> reporter: but here's how b.c.c. is doing it. the bassilas had a $330,000 mortgage, but the value of their house plunged to $180,000. b.c.c. bought the foreclosed property from their bank at that lower price and is selling it back to the bassilas for $233,000. that lowers their monthly payment by 25%. but this is not a charity. >> so i have the full tax return? >> reporter: b.c.c. is financed in part by big investment funds that expect a return. you've put a million dollars into this? >> just over, yes. >> reporter: amy domini manages the sustainability group, a billion-dollar fund for wealthy investors. >> my investors want to be part of the solution. that's... that's what i attempt to give them. when they call and ask what's their portfolio doing, this is

what they're talking about. >> reporter: b.c.c. makes sure clients like the bassilas can afford the lower mortgage and have steady paychecks. monica works at the state department of health. mike is on disability. >> many people that were able to purchase their home back... >> reporter: in a little over a year, b.c.c. has helped 125 boston-area families; only one has defaulted. there will be people who are paying their mortgages who see this and say, "why should those people be helped?" >> i'm hard pressed to see how we're helped as a country by making more people homeless and putting them out of their homes. >> reporter: b.c.c. hopes to roll this program out nationally. in boston alone, 1,700 families are in foreclosure. >> we actually were trying to look for some place to go. >> reporter: but now, monica and mike bassila, who have two daughters and a son in the marines, won't have to move. >> today is a day that i've waited for, for the past three years. >> reporter: you feel like you can take the sign down now? >> yes, i want to take that sign

down. >> there we go! it's done! >> reporter: after a three-year fight to keep her house, monica bassila is finally home again. >> okay, can i give you a hug? >> reporter: ( laughs ) anthony mason, cbs news, randolph, massachusetts. congratulations. >> thank you. >> pelley: betty ford was laid to rest today beside her husband at the gerald ford presidential library. earlier at a memorial service, her son steven said his father was the aircraft carrier and his mother the hospital ship, providing love and comfort. mourners included former president bill clinton and former first lady barbara bush. betty ford died friday. she was 93. what happens in a city with five million cars when they suddenly take the road away? we're about to find out.

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>> carmageddon! ( godzilla scream ) >> reporter: the warning signs are everywhere, from the freeways to the airwaves. >> avoid the area, or just stay home. >> reporter: newscasts are counting down to the big one. all because a stretch of road is closing down from midnight friday to 5:00 a.m. monday while crews demolish half of an old bridge. but here, where the flow of traffic is the city's lifeblood, shutting down a central artery, the 405 freeway which carries 500,000 cars most weekends, is the big one. >> just get the hell out of there. >> reporter: paul gamberg, the unofficial mayor of his bel-air neighborhood, fears his bucolic canyon pass near the freeway will be overrun with diverted traffic. >> we're kind of ground zero for carmageddon. what would happen if there were, lord forbid, a terrorist attack? what would happen if there was an earthquake? >> this is not the time to

panic. >> reporter: doug failing, the traffic engineer who will be monitoring it all from this nasa-like control room, fears despite the warnings traffic could back up 50 miles. >> there is the potential for big traffic. we need a lot of people to really change their plans this weekend. >> reporter: they are. weddings, sporting events, church services have been canceled. jetblue is sold out of a $4, 37- mile flight over the mess. this woman is stocking up and staying home all weekend. so it sounds like you're preparing for this like a disaster, like an earthquake or something. >> it could be. i mean, like i said, we're just planning for a worst-case scenario. >> reporter: if l.a. survives this, it will be a good rehearsal for when the 405 is closed again next year to tear down the rest of the bridge. bill whitaker, cbs news, los angeles. >> pelley: that's the "cbs evening news" for tonight. for all of us at cbs news all around the world, good night. captioning sponsored by cbs

captioned by media access group at wgbh access.wgbh.or going up again. why outraged students are dressed up like cartoon characters. "..rat [ chanting ] uc tuition going up again. why outraged students are dressed up like cartoon characters. >> rat and roaches and mold and mildew. >> it's enough to make your skin crawl. east bay property owners accused of being slumlords. what the city is doing that it has never done before. police say he grabbed a picasso and ran. and it may not be the first time. the surprising stash found in a suspected art thief's apartment. good evening, i'm ken bastida. >> i'm dana king. it's official. hundreds of thousands of uc students will have to dig even deeper into their pocketbooks